The African Export-Import Bank (Afreximbank) has concluded deal to sign into a Korea-focused $150 million club loan.
The facility has Shinhan Bank as
coordinator and lender, with other participating institutions in the
three-year tenor deal including KEB Hana Bank, Woori Bank and NongHyup
Bank.
coordinator and lender, with other participating institutions in the
three-year tenor deal including KEB Hana Bank, Woori Bank and NongHyup
Bank.
Afreximbank’s Executive Vice President in
charge of Finance, Administration and Banking Services, Denys Denya,
said the facility would greatly enhance Afreximbank’s capacity to
achieve its core mandate.
charge of Finance, Administration and Banking Services, Denys Denya,
said the facility would greatly enhance Afreximbank’s capacity to
achieve its core mandate.
The facility, he said would ensure
expanding intra-African trade, supporting export manufacturing and also
significantly fill the trade finance gap the continent was currently
experiencing.
expanding intra-African trade, supporting export manufacturing and also
significantly fill the trade finance gap the continent was currently
experiencing.
“The facility also helps Afreximbank to diversify its sources of funding by geography, instrument and investor base,” he said.
He noted that despite being a debut
facility in the particular market, the facility, which targeted to raise
$150 million, was oversubscribed to the tune of $160 million, with four
banks joining in, saying that the development
was clear testimony of strong confidence in Afreximbank.
facility in the particular market, the facility, which targeted to raise
$150 million, was oversubscribed to the tune of $160 million, with four
banks joining in, saying that the development
was clear testimony of strong confidence in Afreximbank.
Meanwhile, Nigeria may be in for a fresh
financing of its infrastructure projects, courtesy of the African
Development Bank (AfDB), as the lender signed into a $1 billion
Multi-Lateral Development Bank and private sector investors’
facility, tagged Room2Run.
financing of its infrastructure projects, courtesy of the African
Development Bank (AfDB), as the lender signed into a $1 billion
Multi-Lateral Development Bank and private sector investors’
facility, tagged Room2Run.
The initiative, which includes the
European Commission, Mariner Investment Group, Africa50, and Mizuho
International Plc, is aimed at pioneering the use of securitization for
new and previously unexplored segment of the financial
markets.
European Commission, Mariner Investment Group, Africa50, and Mizuho
International Plc, is aimed at pioneering the use of securitization for
new and previously unexplored segment of the financial
markets.
Structured as an impact investment,
Room2Run is designed to enable AfDB increase lending in support of its
mission to spur sustainable economic development and social progress.
Room2Run is designed to enable AfDB increase lending in support of its
mission to spur sustainable economic development and social progress.
Already, the bank, in connection with
Room2Run, has committed to redeploying the freed-up capital into
renewable energy projects in Sub-Saharan Africa, including projects in
low income and fragile countries.
Room2Run, has committed to redeploying the freed-up capital into
renewable energy projects in Sub-Saharan Africa, including projects in
low income and fragile countries.
By the arrangement, Room2Run will
transfer credit risk on a portfolio of approximately 50 loans from among
AfDB’s non-sovereign lending book, including power, transportation,
financial sector, and manufacturing assets, providing
the needed liquidity.
transfer credit risk on a portfolio of approximately 50 loans from among
AfDB’s non-sovereign lending book, including power, transportation,
financial sector, and manufacturing assets, providing
the needed liquidity.
The said portfolios span the African
continent, with exposure to borrowers in North Africa, West Africa,
Central Africa, East Africa, and Southern Africa, while the global
alternative asset manager and a majority-owned subsidiary
of ORIX USA- Mariner Investment Group, are the lead investor in the
transaction.
continent, with exposure to borrowers in North Africa, West Africa,
Central Africa, East Africa, and Southern Africa, while the global
alternative asset manager and a majority-owned subsidiary
of ORIX USA- Mariner Investment Group, are the lead investor in the
transaction.
AfDB Group President, Akinwunmi Adesina,
has described Room2Run as fresh resources to invest in the projects
Africans need most, adding: “Africa has the most promise, the greatest
natural resources, and the world’s youngest population.
But we also have the world’s most persistent infrastructure deficits.
has described Room2Run as fresh resources to invest in the projects
Africans need most, adding: “Africa has the most promise, the greatest
natural resources, and the world’s youngest population.
But we also have the world’s most persistent infrastructure deficits.
“The African Development Bank has the
strategy to address these infrastructure finance gaps—and Room2Run gives
us the capacity to make it happen.”
strategy to address these infrastructure finance gaps—and Room2Run gives
us the capacity to make it happen.”
